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Thursday, June 26, 2008

I believe the amount saved from subsidy cut is enough to build a decent public transportation system in Malaysia. It is said we will save about RM 23 billion from subsidy cuts alone. The Penang Monorail system is only about RM2 billion. That means Malaysia can have 10 more “Penang Monorails” based on the savings alone. If Malaysia sells bonds to subsidize this project and if the project is done on large scale, it will be cheaper and more tracks and trains can be built and bought.

I’ve said it once, I’ve to say it 1000 more times. The subsidy that the government is cutting does not go back to the people. It goes to cronies and people who are connected. It is not spent back to the people. It's making a small minority richer and the majority suffer.

I read the report on Malaysiakini that the Monorail Project ( and PORR) is shelved by the government. We have heard so many times the government says that the money saved from subsidy will be spent on infrastructure.

Well, the Penang Monorail project is BUILDING INFRASTRUCTURE. Not only that, it is a necessary infrastructure in order to reduce our consumption on oil. It is also necessary to provide alternative for the people transporation wise.

It is exactly the much needed projects that is supposed to be built with the money saved from the cutting of subsidy. What’s more, the amount of fuel consumption can be significantly reduced with the project. I estimate at least 5% of Malaysia’s fuel consumption can be reduced, plus, with alternative transportation, the Penang economy will enjoy a bigger increase in consumer spending that will make local business owner very happy.

You see, to put “consumer spending” concept in simpler terms. When people goes out less, it means that people will visit business establishment less. When people goes to “shops” less, people will buy less. When people buy less, business’s earn less profits or records losses. When this happens, we find more “shops” closed and we will also find more people out of jobs.

But with a proper public transportation system, people have alternatives to travel and move without having to hawk their future. People will also have more money in their pockets (termed: disposable income) since they do not have to spend much on fuel anymore. When people have more money, they will spend more, and businesses will thrive more solving a lot of problems related to employment and bankruptcy. Which means less problems for the government and happier subjects of the state.

The reasoning given by BN government is also, at best, funny. Read:

“It stressed that the shelving of the projects was part of the government's "relocation" of resources to cushion the impact of the unprecedented hike in global oil prices.”

Now, isn’t that a case of “liar, liar, pants on fire”. This project is exactly the kind of project needed to handle the “unprecendented hike in global oil prices”. The amount of savings from subsidy due to this project alone will enable the government to sell bonds just for the sake of financing this project.

In fact, I advocate the government of Malaysia to sell bonds in order to build train system in all major cities in Malaysia and at least triple coverage for the current LRT station in Kuala Lumpur. In addition to the savings generated from the cutting of subsidy.

I believe the amount saved from subsidy cut is enough to build a decent public transportation system in Malaysia. It is said we will save about RM 23 billion from subsidy cuts alone. The Penang Monorail system is only about RM2 billion. That means Malaysia can have 10 more “Penang Monorails” based on the savings alone. If Malaysia sells bonds to subsidize this project and if the project is done on large scale, it will be cheaper and more tracks and trains can be built and bought.

But, it seems we have been lied to by Barisan Nasional. We were promised a public transport system from the savings of subsidy. Now, we see public transport are being denied from Penangnites.

If the BN government refuses to finance this project, I challenge the BN government to amend the Finance Act to allow Penang Government to sell bonds. I am sure that if it’s Penang government handling the same project, it will cost MUCH LESS than RM 2 billion. Or with RM 2 billions, Penang government can build tracks 3 times the size that’s is planned by the BN government.As for PORR, I would like to reserve my comments as there have been so much controversy on the project. Only thing is that, with the project there’ll be less traffic jam. That would mean less waste on fuel which in turn results in less spending on fuel.

Lastly, this denial underlines the hypocrisy of the BN government. This is a trying time and everyone is suffering. It is not the time to play politics and it is certainly not the time to punish people for voting Pakatan Rakyat.

There will be other elections and in the next 4 years, people will decide again. And by allowing this project to proceed, I am sure many will be indebted to BN and will change their stand on the BN. It’s a loss for BN actually.

The government lower the amount of fuel subsidies because it can't afford it. Wouldn't it be rather daft then to take all the savings and, instead of paying down national debts and lowering the fiscal deficits, build 10 Penang monorails?

All indications are pointing to a healthy economy, which means that we have the money we saved.

And we have to pay subsidies every month or year.

We spend on public transport infra only once.

So, why not spend now???

I know for a fact Malaysians prefer public transport as compared to driving. Just go to any LRT stations at rush hour. Go to stesen masjid jamek at 0800 in the morning on a work day and see for yourself.